Amidst discussions, the council acknowledged the challenges posed by the budget shortfall, particularly in light of rising costs and the need to sustain a healthy fund balance. The proposed budget for 2026 stands at $23.7 million, requiring a reserve of around $11.52 million to ensure smooth operations. Given the city’s financial position, there was an emphasis on the necessity of making strategic decisions promptly, especially with upcoming deadlines for truth in taxation statements.

Early retirement emerged as a prominent topic, with council members debating the potential benefits and drawbacks of such a plan. The primary objective is to reduce full-time equivalent positions without resorting to layoffs, which could disrupt operations and affect morale. Attrition was considered a viable option, but concerns were raised about its sufficiency in achieving budgetary goals, particularly if critical roles within departments like police and fire services were affected.

Council members recalled the success of past early retirement packages and expressed interest in designing a similar program, involving input from human resources and legal advisors. This approach would ensure compliance with regulations and address potential impacts on remaining staff, who might face increased workloads. The council discussed eligibility criteria for the retirement package, considering age and years of service, and deliberated on attractive incentives such as healthcare benefits or pension enhancements.

The importance of a clear, appealing offer was underscored to encourage participation in the early retirement program. Financial implications were carefully assessed, with estimates suggesting that covering six months of healthcare could cost between $15,000 and $18,000, depending on coverage specifics. By narrowing down the target departments and setting a timeline, the council aims to finalize the proposal and gather employee feedback by October 6.

Excluding public safety personnel from the early retirement program was a key consideration, as these positions would need to be replaced to maintain service levels. The council proposed a motion to request human resources to present a plan for evaluation at the next work session, with the goal of reducing two to three full-time equivalent positions while treating employees with dignity throughout the process. The timeline for implementing the package was discussed, with employees needing clarity on the incentives by October 20.

In addition to the budget discussions, the meeting featured a special moment honoring Tom Dankard, the city’s administrative services and finance director, for his 29 years of service. Mayor Steve King awarded Dankard a key to the city in recognition of his contributions, highlighting the difficulty of replacing his expertise. The council members’ applause acknowledged his departure and the lasting impact of his work.